Goldman Sachs financial sent couple for the case of bankruptcy
SAN JOSE, Calif. — When Ca wildfires damaged the accessories providers, Tony Becker and his wife decrease months behind on their financial costs and you can experienced first-hand new dangers of subprime mortgage loans.
The couple finished up during the a hopeless, six-year endeavor to maintain their step 1,500-square-feet San Jose home, difficult that pressed them into bankruptcy proceeding.
The lending company which have just who they sparred, although not, was not one which had written its financing. It had been a vague part of Wall structure Road colossus Goldman Sachs Classification.
Goldman spent age to buy hundreds of thousands of subprime mortgages, several away from some of the alot more distasteful loan providers inside the business, and you will packaging all of them on highest-yield ties. Since the bottom keeps fallen out of that sector, Goldman finds in itself during the another type of part: While the huge banker that takes house off visitors particularly since Beckers.
The happy couple allege you to definitely Goldman refused for three decades to confirm the suspicions that it got purchased the mortgage loans out of a subprime financial, even with they wrote to help you Goldman’s then-chief executive Henry Paulson — later on U.S. (more…)